Cardano (ADA) has slipped from a local high of $0.84 down to the $0.73 region. The ADA price action showed signs of bearish momentum and waning trading volume. The pullback comes at a time when the Cardano ecosystem has reached a significant milestone.
There are now more than 2,000 projects building on the Cardano blockchain, according to data from TapTools. Despite this fundamental strength, technical indicators suggest caution in the short term. ADA is approaching a potentially risky buy zone between $0.71 and $0.725.
On the 4-hour chart from @larybranaa, ADA price’s rejection from the $0.84 resistance area triggered a steady decline. A series of lower highs and lower lows marked it. The descending price action coincided with a decrease in volume. This indicates a lack of conviction from bulls to defend higher support levels. ADA coin is currently trading near $0.73, brushing up against a key horizontal support zone that has held multiple times since mid-May.
Cardano Sellers Are Currently in Control
The Bollinger Bands on the chart are beginning to squeeze. This itself is a classic signal of reduced volatility and a possible breakout on the horizon. However, the Cardano price is currently pressing against the lower band, suggesting that sellers are in control. The 20-period simple moving average is currently at $0.75, serving as a dynamic resistance level. ADA has struggled to close above this level since May 27.
Supporting this view, the On-Balance Volume indicator is trending sideways to slightly downwards. It is showing that buyer demand has softened in recent sessions. While not aggressively bearish, the OBV does not provide the bullish divergence needed for confident accumulation at these levels.
Meanwhile, ADA’s price is just above a support area between $0.71 and $0.725. This previously acted as a springboard for short-term rallies. This zone could offer bulls a speculative entry point, but only with tight risk controls. A decisive break below $0.71 would invalidate this setup and expose the token to further downside. Moreover, the next support sits near $0.69.
Long-Term Fundamentals of ADA Remain Solid
Despite the uncertain technical outlook, Cardano’s long-term fundamentals are strong. The network’s growth continues to impress. There are more than 2,000 projects now actively building within its ecosystem. This shows growing developer confidence in the network’s scalability, security, and upcoming technical upgrades.
Still, the short-term market structure suggests ADA coin could face continued resistance unless bulls regain control. There should be a high volume bounce above the $0.75 level. For now, traders are closely watching how ADA behaves around the $0.71–$0.725 zone. If this level holds and is accompanied by a recovery in OBV and volume, it could lead to renewed interest heading into June.
Until then, caution is warranted. Cardano (ADA) may offer a long-term value proposition. But in the near term, its fate depends on whether this current support can withstand the bearish tide.
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